The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-06-19
A RICE CORNER WORKING
A NEW YORK FIRM BUYING UP
THE SOUTHERN STOCKS.

The Bearish Attitude of the journal
Of Commercial Bull FIRMS Circular
on the Subject High Grade Rice at
Low Grade Prices - Domestic Rice
Selling Higher Than Foreign.
Many of the prominent rice merchants in
New York and the South have discovered
what they consider an effort to bear and
corner rice The last crop has been about
used up and the stocks generally are small,
and the new crop will not come in before the
middle of September so the time is ripe for
corner, if any operators desire to run
one For this reason the reports concerning
the market have all been watched with in
terest. The New York Journal of Com
1nerce has contained some very bearish arti-
cles of late, and they have attracted so much
attention that West & Melchers, Of New
York, have issued the following circular
which they have distributed extensively
throughout the Southern markets:
FLAT CONTRADICTION.
We beg to call your attention to the following
article which appeared in the New York Journ-
al of Commerce of June 10: "Rice-Domestic
sorts took tumble to-day, and we quote the
market at M0t14c. off Holders attribute the
weakening to the influence of the foreign sorts
which are now being received and sold at
great disparity in price. These may have con-
tributed incidentally but are not the real factors
of weakness. The present condition of the
market is due to the falling away of the de-
mand and the activity Of the festive weeVll and
'plodding worm, both here and at the South,
The latter destructive elements tend to make
outside holders quite thoughtful as to their
possessions, lest they take to themselves
wings or crawl away. Much of the stock held
on speculation has in it a 25 to 35 per cent.
profit, and can therefore be sold at quite a re-
duction from the present quotations, and yet
leave 'trife to buy the child frock.' Coast
markets are dull and stocks accommodating"
While we give our friends in the South credit
for intelligence enough to know that the above
is untrue in every particular, we would not feel
justified in remaining silent while such report
was circulated broadcast in a paper of such
prominence. Our market is firm, with light
stocks and a good demand. ALI indications
point to higher plane of values in the near
future.
A LOCAL OPINION.
MesSrs. Harmon & Cope, of this city,
were called upon yesterday, and were asked
their views on the positions of the Journal
of Commerce and Messrs. West & Melchers,
and from them was learned something in
connection with the movement that gave it
the appearance of an effort to run corner.
These bearish articles have been appearing
in the JouYnG ! of Commerce for several
days, and they have been followed by
wholesale offers of high grade rice at low
grade prices by Talmage 81 Sons. If there
has been a decline in New York,
primary markets are not aware
of it. and private information
from that point indicates a firm market and
strong demand, with a tendency toward
higher prices. Regarding the ''festive wee
wiz it has not made its appearance in this
market, for there are not 100 barrels of rice
here that are more than thirty days old
and if the weather reports are correct the
temperature in New York has not been high
enough to start the 'plodding worm q
plodding in the rice held there.
The figures of the Board of Trade show
that 2 16S barrels of clean rice have gone
into consumption from Savannah since
June 1, showing that there is good demand
for the article and movement outward
that will not admit of an accumulation of
stocks.
HOW THE CORNER is WORKED.
Messrs. Harmon g. Cope said that the bear
movement was inspired by Talmage & Sons,
who, after the bearish articles had been
thoroughly circulated, began sending little
sample packages of high grade Patna rice to
the rice buyers of the South, and offering to
sell that foreign stock at &c. to 414c. Patna
rice of the quality of the samples costs 41Sc.
in New York and 4sssc. in Savannah; yet it
was offered here at from 1Sc to &c below
cost, presumably for the purpose of creating
the impression that if this high grade
could be sold at such figures domestic rice
must be worth much less; but at the same
time they sent word to their broker here to
buy all the domestic rice he could at the
market price, and Mr.. Harmon said that he
bought on Friday at 4$sc. He thought that
there is no question about it that Talmage
& Sons are playing for all the rice that re-
mains in the South, and that they are max
ing their bear statements public while they
are quietly paying top prices for all they
can buy.